KPMG AUDITORES E CONSULTORES, S.A. Mukanda Económica Economic Newsletter – November 2008

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1. Macroeconomic Information

A) Consumer Prices Index -

2008 Inflation Variation Month Annual Last 12 in Spending Class Accumulated Months % January 0,85% 0,85% 11,82% General Index 1,08 February 0,86% 1,72% 11,82% 01. Food and non-alcoholic drinks 0,73 March 0,72% 2,46% 11,74% 02. Alcoholic Drinks and Tobacco 0,03 April 0,92% 3,40% 11,89% 03. Clothing and footwear 0,08 May 1,02% 4,46% 12,04% 04. Habitation, water, eletric. and fuel 0,05 June 1,00% 5,50% 12,27% 05.Furniture, domestic equip. and maint. 0,06 July 1,16% 6,72% 12,50% 06. Health 0,02 August 1,03% 7,82% 12,78% 07. Transportation 0,01 September 0,86% 8,75% 12,91% 08. Comunications 0,00 October 1,08 9,93% 13,21% 09. Leisure, recreation and culture 0,02 10. Education 0,00 Inflation 2007 11,80% 11.Hotels, coffees and restaurants 0,96 Inflation 2006 12,20% 12. Assorted Goods and Services 1,02 Inflation 2005 18,53% Inflation 2004 31,02% Inflation 2003 76,57%

Source: INE

B) Exchange Rates

Beginning End Variation EUR/USD 1,282 1,272 -0,78% USD/ZAR 9,858 10,096 2,41% USD/BRL 2,147 2,334 8,71% USD/CNY 6,836 6,835 -0,01% USD/KW 75,031 75,028 0,00% EUR/KW 95,518 97,207 1,77% ZAR/KW 7,507 7,608 1,35%

Source: Angolan Central Bank and Portuguese Central Bank 3 Mukanda Económica – Economic Newsletter

C) Raw Materials

Beginning End Variation Gold (usd p/ ounce) 723,55 818,05 13,06% Oil (usd p/ barrel) 63,91 54,43 -14,83% Natural Gas 6,840 6,510 -4,82% Source: Nymex and Bloomberg

D) Nominal Interest Rates

2007 Kwanzas USD Up to 180 days More than 1 year Up to 180 days More than 1 year December 13,94% 8,72% 8,66% 8,36% 2008 March 13,25% 10,03% 7,22% 8,43% June 11,95% 11,26% 9,00% 7,58% July 10,75% 11,30% 6,87% 7,48% August 13,36% 10,89% 10,67% 7,48% September 14,56% 10,68% 10,89% 7,56% October 12,18% 10,35% 9,25% 7,66% Source: Angolan Central Bank

It is available on the internet the proposal for the Government Budget 2009. For more information, please visit the website:

http://www.minfin.gv.ao/docs/dspPropostaOrcam.htm 4 Mukanda Económica – Economic Newsletter

2.News

A) Presidency of the Republic

PR creates working group for The document further states that the requalification implementation civil society is represented by The President of the Republic, José Association of Intellectuals of Eduardo dos Santos, on Wednesday Cazenga, emphasizing that in order for created a working group aimed at the group to fully fulfill its duties, it joining efforts of the Government, the has to establish its internal private sector and the civil society to organization and mode of operation, implement the Project for the mobilize, within and outside the Requalification of Cazenga country, the necessary financial Municipality, in Luanda. resources, regularly informing the Head of Government on their According to a press release from the performance. Office of the President, distributed in Luanda, the group is coordinated by 13th of November 2008 Aguinaldo Jaime of the National Agency for Private Investment (ANIP), Angop among other representatives from the Ministries of Urban Affairs and Housing, Public Works and Environment, as well as the Government of Luanda Province.

Other members, from the private sector include the consortium of GEOSAT7 Lda, COIMÓVEIS, Lda., companies that use advanced rapid building technology, DAR-EL- HANDASH, consultant and designer, as well as Banco de Negócios Internacional (BNI). 5 Mukanda Económica – Economic Newsletter

PR creates Steering Committee for The new committee shall work in the Angola Sovereign Wealth Fund close coordination with the Ministry of Finance and the National Bank of Angola, submit its support budget and The President of the Republic, José expenditure for the ongoing work to Eduardo dos Santos, created on the Ministry of Finance and complete Thursday, in Luanda, a Steering its work in 20 days. Committee for the Angola Sovereign Wealth Fund (SWF), taking into account that in view of the current 20th of November 2008 global economic situation, the State Angop needs mechanisms that guarantee the efficient management of its resources and shield the country President of the Republic issues against external vulnerabilities and dismissal and appointment decrees turbulent economic cycles. The President of the Republic, José Eduardo dos Santos, yesterday, According to a press release from the Monday, in the exercise of powers Office of the President of the conferred on him by the Constitution, Republic, the duties of this issued various decrees, according to Committee include to establish a the press release from the Office of strategy and conditions for the the President. operation and development of the FSA, an instrument that will guarantee The Head of State removed Américo the maintenance and maximization of Maria de Morais Garcia from the the financial reserves of the country office of Chief of Staff of the and use them in areas of strategic President of the Republic, Mártires interest to national development, thus Correia Victor, from the office of leading to the internationalization of Deputy Governor of Luanda Province, the Angolan economy. José Durbalino de Carvalho, from the office of Deputy Governor of Malanje Coordinated by the Economic Advisor and Miguel Maria Nzau Puna from the to the President of the Republic, with office of Ambassador Extraordinary membership of Ricardo Viegas and Plenipotentiary of the Republic of d’Abreu and Francisco de Lemos José Angola to Canada. Maria, the committee is overseen by On the other hand, the President the Minister of Economy, Manuel appointed Federico Manuel dos Nunes Júnior, and supported by a Santos e Silva Cardoso as the Chief of technical group for legal affairs Staff of the President of the Republic composed of the Secretary to the and Francisco Manuel Monteiro de Council of Ministers and the Advisor Queiroz as advisor to the President for to the President of the Republic on Parliamentary Affairs. Legal Matters 6 Mukanda Económica – Economic Newsletter

Jovelina Alfredo António Imperial and Francisco Domingos were appointed as Deputy Governors of Luanda Province for Social and Economic Affairs, respectively, while Conceição Luís Cristóvão, who was occupying the office in Malanje will be in charge of Organization and Technical Services. The Head of State also appointed Aniceto Miguel da Costa Aragão, Manuel José Domingos, Arcanjo Custódio, Domingos Salvador Baxe, Beato Manuel Paulo, Pascoal António Joaquim, Miguel do Nascimento Morais and Filomena Margarida do Nascimento Gonçalves as assistants to the Attorney General of the Republic. 24th of November 2008 Angop 7 Mukanda Económica – Economic Newsletter

B) Government

Minister of Transport appoints new Inavic Directors The Minister of Transport, Augusto Tomás, appointed, on Wednesday, a new Management Body for the National Institute of Civil Aviation (Inavic), to be headed by Gaspar Francisco dos Santos.

According to the press communiqué made available to Angop, Celso Rosas was appointed to the office of Deputy Director General. In another executive order, the Minister of Transport relieved António de Jesus Pombal of the office of Director General of Inavic and Gaspar dos Santos and José Machado Jorge of the positions of Deputy Directors General, while Sebastião Domingos was relieved of the position of the position of Government representative at Ghassist.

12th of November 2008 Angop 8 Mukanda Económica – Economic Newsletter

C) Resolutions of the Ministers Council

Government dissolves the Board of In spite of efforts made and support TAAG given by Government, the Board of Directors, which mandate has now The government yesterday (Thursday) been terminated, “was unable to lead dissolved the Board of TAAG and the company to incontrovertibly directed the Ministries of Economy, overcome the operational and security Finance and Transport to appoint a obstacles that were adduced for the management committee and a banning of TAAG from European steering committee for the airspace, which ought to have been Refoundation program of the one of their major achievements”, the company. communiqué read. The measures taken today by the Council of Ministers, at its 12th of November 2008 extraordinary session, presided over Angop by the President of the Republic, José Eduardo dos Santos, were born out of the current situation in which the Management Committee created for national air career is. Taag According to a press communiqué The affairs of the National Airline, from the Ministry of Transport, Taag-EP, shall, from today, be distributed to the press, “the conducted by a management government decided not to further committee appointed through the prolong the approach of development joint executive order of the Ministries in continuity that had been followed of Economy, Finance and Transport, by TAAG and instead introduce certain within the framework of the changes that will lead to the refounding of the company. permanent reversal of the current According to the executive order, situation of the company”. made available to Angop, the committee shall have a one-year mandate, which could be shortened or extended, depending on the program for the refoundation of Taag- EP, coordinated by António Luís Pimentel de Araújo. Other members of the committee are Joaquim Teixeira (Deputy Coordinator), Adriano António de Carvalho, Efigénia Martins, Luís Eduardo dos Santos, Rui Teles Carreira and Domingos Sebastião. 9 Mukanda Económica – Economic Newsletter

Positions will be distributed to Government approves new members of the committee in such a composition of Sonangol Board of way as to ensure balance between Directors the complexity of the airline and the immediate challenges that it faces. The Government approved today In another joint executive order, from (Wednesday) a new composition for the same ministries, a Committee for the Board of Directors of Sonangol- the Taag Refoundation Program was E.P., which comprises Manuel established, to be coordinated by Vicente, as Chairman/CEO, and Adriano António de Carvalho and Mateus Morais de Brito, Anabela assisted by Rui Teles Carreira. Soares de Brito da Fonseca, Fernando Joaquim Roberto, Francisco de The committee to be overseen by the Lemos José Maria, José Guime and Minister of Transport, Augusto André Lelo, as Administrators. Tomás, has the major objectives of designing a strategy and an organizational structure for the new During a meeting of the Council of national airline. Ministers, the Angolan executive terminated the tenure of the Board of The committee shall propose to the Directors of the National Agency for Minister of Transport the adoption of Private Investment (ANIP) and a dual model, separating the appointed a transition management supervisory body (general council and committee coordinated by Aguinaldo supervision) and the executive body Jaime, with Manuel Rebelo Vieira (Board of Directors), the hiring of Olim Neto and Dedaldino Oliveira national or foreign manager to the Fuato Balombo as members. Board of Directors and to the second lines. It may also propose the contracting of consultancy companies The management committee is and the selection of an international charged with running the daily affairs strategic partner for Taag and the and proposing measures for the review of the framework of state- restructuring of ANIP, according to owned aviation companies (Taag, the press communiqué issued at the Sonair and SAL). end of the meeting. The Government took note of the composition of the 12 th of November 2008 Board of Directors of Sociedade de Angop Desenvolvimento do Pólo Agro- Industrial de Capanda (SODEPAC, S.A) and Sociedade de Desenvolvimento dos Perímetros Irrigados (SOPIR, S.A), respectively. 10 Mukanda Económica – Economic Newsletter

According to the proposals submitted, the composition of the Boards are, for SODEPAC, S.A., Carlos Fernandes, Manuel Godinho Domingos, and João André, and for SOPIR S.A., Rafael Albino, Dina Maria Rodrigues Francisco Rosário Neto and José Manuel Francisco.

The collegial organ of the Government approved accession to the UNESCO International Convention Against Doping in Sport, which enables governments to take action toward eradicating doping in sport and facilitates the enforcement of the World Anti-Doping Code.

It also approved the period for the updating of the voters’ register for 2009, as well as the general schedule for the commemoration of important national events in 2009 and authorized the launching of the promotion campaign for the Diamond Summit to be held in Luanda from 3 – 6 November 2009.

The Executive also approved the draft contract entered into between the Ministry of Fisheries and the LR Group for the supply of equipment for the implementation of the monitoring, control and surveillance of the exclusive economic zone of Angola. 26th of November 2008 Angop 11 Mukanda Económica – Economic Newsletter

D) Energy and Natural Resources

Angola cuts daily oil production quota Sonangol and KBR sign agreement for installation of Lobito Refinery The Ministry of Petroleum announced on Wednesday that Angola cut its oil Sonangol (Sociedade Nacional de production quota, estimated at 1.9 Combustíveis) and Kellogg Brown & million barrels of crude, by 99 Root (KBR) signed an agreement thousand bpd, effective 1 November, today (Wednesday), in Luanda, in compliance with OPEC granting the American company the recommendations. right to design the plan for the Lobito refinery - Projecto Sonaref. According to a note from the Ministry of Petroleum, the amount cut is the production reduction quota of Angola, The agreement also grants KBR the as agreed by OPEC on 24 October, right to issue licenses to the during the extraordinary conference of companies that will construct the the cartel, held in Vienna, the capital Lobito refinery at a cost estimate of at of Austria. 6.4 billion Dollars. 5th of November 2008 Addressing the press at the end of Jornal de Angola the meeting, the Director of Projecto Sonaref, Nelson Santana, explained that KBR is only a company hired by Odebrecht to invest in petroleum the concessionaire, Sonangol, to exploration in Angola come up with the design of the refinery and that the agreement does The oil and gas unit of the not constitute a cost partnership for construction company, Odebrecht, the construction of the refinery. plans to invest 100 million Dollars in 2009 on the conduct of well drilling The Sonaref construction may be tests in an exploration block in Angola, concluded within four years and the the Vice-President of Odebrecht Oil project is expected to refine 200 and Gas, Limited, Miguel Gradin, barrels of highly acidic oil crude oil per revealed. day, which will be processed into derivatives to be sold mainly in the In an interview with the American domestic market and the excess Dow Jones, Gradin revealed that exported to the international market, Odebrecht Oil & Gas will drill four mainly targeted at Africa. wells in Block 16 “offshore” Angola, where it has 15 percent participation The refinery, which will be and which is surrounded by blocks constructed 8 kilometers off Lobito that have recent discoveries and wells town, will bring benefits to the local that are under production. population and will comply with the environmental standards of the World Bank. 5th of November 2008 Angop 12 Mukanda Económica – Economic Newsletter

Maersk Oil is the operator of the block Proposed two years ago, the project with 50 percent participation, while has led to the installation of 2.800 pre- Angolan oil company, Sonangol, has paid meters, aimed at reducing client 20 percent participation, while the debts and facilitating the management remaining 15 percent belongs to of consumption according to income. Chevron Energy. 13th of November 2008 Gradin also said that Odebrecht is still Angop interested in procuring additional exploration and production concessions in that African country. Implementation of "Angola LNG" Project enters into new phase of 6th of November 2008 operation MacauHub The implementation of the “Angola LNG” project designed to reactivate the production of Liquefied Natural Edel to install 25 thousand meters this Gas, in Soyo Municipality (Zaire year Province) will today enter into a new Twenty five thousand new watt-hour operational phase, with the symbolic meters in the capital city by the end of delivery to Angola LNG, of the site 2008, under the program of where the plant will be located. Distribuição de Electricidade de During the meeting, which will have Luanda (Edel) aimed at installing the members of the Provincial meters in homes of clients. government, Ministry of Petroleum According to a document from Edel, and representatives of major made available to Angop today shareholders of the Project (BP, (Thursday), the project has already Chevron, Exxon, Sonangol and Total) facilitated the installation, between in attendance, the officers in charge 2005 and 2006, of 116.322 meters. of the project will officially receive the completion certification of the Apart from installing conventional conclusion of the dredging works of meters, Edel is carrying out another 100 hectares over the Zaire river from project of installing pre-paid meters, the Dutch company, Boscalis, as part which during the first phase, will of the space allocated to the factory. benefit Terra Nova and Nelito Soares boroughs. This program ushers the project into the final phase of project construction. 13 Mukanda Económica – Economic Newsletter

The “Angola LNG” project is located Chevron, working in the Tombwa to the West of Soyo, between the Landana and Negage fields, will begin Zaire river and the Kwanza Basin, and to produce about 200.000 bpd in will occupy an estimated area of 240 2009, Total 200.000 bpd in the Pazflor hectares. field in 2010 and in 20--?? BP, Exxon and Total will produce a total of 14th of November 630.000 bpd. Angop 21st of November 2008 MacauHub By 2011 Angola will be one of the largest oil producers in the world, Huambo plans to construct three mini writes African Business hydro power plants in 18 months

Angola may become one of the The Director of the Office of Studies largest oil producers in the world by and Planning of the Government of 2011, writes African Business , Henrique Mendes magazine in its November edition. Teixeira, announced yesterday (Tuesday) that the Province is African Business writes that in the preparing to construct three mini next four years, Angola’s oil hydro power plants in 18 months to production will produce an additional solve the problems of power 1.165 million bpd to the current 2 generation and distribution to the million bpd. region.

The magazine ran that in September According to Henrique Mendes 2009 there would be a substantial Teixeira, who spoke to the press at production increase when the the end of an audience granted by the Tombwa Landana oil field, in Cabinda, Governor of Huambo Province to the would commence oil production and Managing Director of the German that in 2010 this would reach 100.00 Engineering Group, Gauff bpd. Engineering, Helmot Gauff, the mini hydro power plants will be According to African Business, constructed in Bailundo, Catchiungo between 2009 and 2011, the Tombwa and Longonjo, Lépi commune. Landana, Negage, Pazflor, Block 31, Block 18, Kizomba D, Clov and Block Henrique Mendes Teixeira said that in 32 fields will have a production of 18 months the German company will approximately 1.165 million bpd. conduct studies, make designs and build the plants.

25th of November 2008 Angop 14 Mukanda Económica – Economic Newsletter

E) Infra-Structures, Government and Health Trains arrive roll into Huambo in December 2009 Program comprises special zone The Caminho-de-Ferro de Benguela for Luanda and Bengo (Benguela Railway) is being rehabilitated and modernized; from The Program of the Government for the base, in Lobito, to Chinguar the year 2009 presented today Municipality, in Bié. (Friday), in Luanda, at the National Assembly, establishes, among other The program for the modernization of things, the implementation of the Caminho-de-Ferro de Benguela integrated urban and infrastructural (CFB) plans for the construction of expansion plans for Luanda and new stations, bureaus, and modern Bengo. services with information and entertainment content for the This was announced by the Prime passengers will be installed. The Minister, António Paulo Kassoma, on trains will have first class and the occasion of the presentation of economy class carriages. the Program of the Government and the National Budget (OGE) for 2009 to The linkage between Lobito and the Members of Parliament. Huambo town is expected to be According to the Prime Minister, as concluded in December. Work is part of the promotion of the being done at a fast pace, in order for harmonious development of the deadlines to be met, as per country, this program also provides established between the National for the institutionalization of the Reconstruction Office (GRN) and the Luanda/Bengo special economic zone. Chinese contractor, the construction company CR-20. According to the 7th of November2008 Director General of Caminho-de-Ferro Angop de Benguela (CFB), Daniel Kipaxe, the GRN and the Chinese construction company have already guaranteed that the work will be concluded within the agreed timeframe. 7th of November 2008 Jornal de Angola 15 Mukanda Económica – Economic Newsletter

Luanda-Beijing Direct Flights from The report further points in 2008 to next weekend the existence of mainly urban populations in Angola (57 percent), The Angolan Airlines, Taag, will Cape Verde (60 percent), (59 commence regular Luanda-Beijing percent) and Brazil (86 percent). flights from next weekend, in an attempt to capture the increasing 14th of November 2008 traffic between the two capital cities, Jornal de Angola an Angolan Diplomatic source said in Beijing on Monday. Presentation of sanitation master plan It will be a direct flight of about 13 for Luanda hours, twice a week and will initially The sanitation master plan for Luanda, work on charter basis. aimed to find alternatives to the There are thousands of Chinese channeling of waste and rain water to nationals working in Luanda, the sea without harming the particularly in civil construction and environment, was presented today, “the Angolan Embassy in Beijing has Friday, at the Provincial government already issued 40.000 visas this year”, office. During a ceremony held at the the same source revealed to the main hall of the Government of Portuguese news agency, Lusa. Luanda Province (GPL), which had in attendance the Governor of Luanda, 11th of November 2008 Francisca Espírito Santo and the Minister of Environment, Fátima MacauHub Jardim, the need to stop considering Mussulo Island and the Luanda Angolan population attains 45 million waterfront as receivers of waste by 2050 water was raised.

By the year 2050, the population of The possibility of installing Angola would have increased beyond technological water treatment the current 17.5 million inhabitants to systems at a level that enables such 44.6 million, according to United water to be recycled in areas such as Nations Population Fund (UNFP) agriculture, cleaning and irrigation of estimates in a study to be presented gardens, thus avoiding the use of this week in Lisbon. The population of water from the Luanda Water Board Guinea Bissau and East Timor will (EPAL) water for such activities, was double. also discussed. 16 Mukanda Económica – Economic Newsletter

The Director of Public Affairs of the This figure was given in Luanda on company Coba – Consultores de Friday by the Minister of Planning, Engenharia e Ambiente, Carlos Lopes Ana Dias Lourenço, during the closing Gonçalves, who presented the master ceremony of the XII Technical and plan for Luanda sanitation, said that Scientific Session of the Eduardo dos with the construction of new Santos Foundation. buildings, new networks will be created and as such there is need to According to Ana Dias Lourenço, this channel the drainage of these indicator could mean the development buildings. and modernization of the country, to some, while to others it poses a great Carlos Gonçalves is of the opinion that challenge in terms of planning and for Luanda, among other priorities, organization of urban spaces. there will be need to redo the current drainage network in the center of the 24th of November 2008 city and cater for the needs of unstructured areas, where the needy Angola Digital people live.

According to the Engineer, places Zambia constructs link to Benguela where waste water could be re- Railway ejected should be deep and take the Zambia is constructing a railway line current flow into consideration, for that will link directly with Benguela which reason possible areas for railway, Televisão Pública de Angola channeling were identified, apart from (TPA) informed, citing the Angolan the already existing one in Chicala, Ambassador to Zambia, Pedro Neto. “emissores” in Cacuaco, in Samba and probably in the Kwanza area. The television station further states that the project embarked on by 14th of November 2008 Zambia aims to facilitate the Angop transportation of major products between the two countries and other parts of the region. 57% of Angolan population lives in urban areas 26 de Novembro de 2008 Fifty seven percent of the Angolan MacauHub population, equivalent to more than eight million people, lives in urban areas, according to a study conducted by the United Nations Population Fund. 17 Mukanda Económica – Economic Newsletter

G) Industrial Markets Biggest Printing House in the Country costs more than USD 25 million The total amount invested so far by the Angolan entrepreneurial group, Brewery will raise annual production Média Nova, in the establishment of a The Cuca brewery in Catumbela, printing house that was inaugurated Benguela Province, plans to raise its today (Thursday) in Talatona, Luanda production in 2009 from 560 thousand Sul, is 25 million Dollars. hectoliters to 600 per year, the Deputy Director Marketing, Joaquim The establishment, called Damer, was Federico de Almeida informed today inaugurated by the Minister of (Tuesday). Industry, Joaquim David. It has the capacity to print 75 thousand The Deputy Director Marketing of the newspapers or similar 48-page Catumbela brewery underscored that products, per hour, and is currently the factory currently produces, in running at 48 percent of its capacity. hectoliters, an equivalent daily average of 60 thousand crates. By March 2009, when the project is Joaquim Federico de Almeida said completed, the investment would that the brewery will maintain a have attained USD35 million and will production of 60 thousand crates/day yield 30 million Dollars per year, until the end of this year in order to according to the Board of Directors of avoid shortage in supply of the Média Nova, Alvaro Torre. product to the local market, The Manager informed the press, particularly during the oncoming after the inauguration of the industry, yuletide. that in March 2009, a mint will be built in the Damer premises to print bank For the Manager, peace and the cheques, credit cards and recharge rehabilitation of roads, which provide cards for national telephone greater access to major beer operators. consumption markets such as Huambo, Kuanza Sul and Bié Provinces, are factors that are Damer, build it two and a half years, favourable to the transportation of the will print, among others, newspapers, product. books, magazines, business cards, printed adverts and similar products. 25 de Novembro de 2008 Angop The printing house has a surface area of 400 meters square and employs 73 workers, including nationals and expatriates at different levels of professional specialization in the fields of industry, commerce and administration/finance. 13th of November 2008 Angop 18 Mukanda Económica – Economic Newsletter

H) Consumer Markets

PRESILD - President of the Republic approves new model of governance Furthermore, the PRESILD Implementation Monitoring, Control This Friday, the President of the and Supervision Committee is Republic, José Eduardo dos Santos, in coordinated by the Deputy Minister of the exercise of the powers vested on Finance, with delegated powers of him by the Constitution, issued an the Coordinator of the Coordination executive order that terminated the Group. It must be multidisciplinary in mandate of the Executive Secretariat nature, based on the objectives of of PRESILD and approved, in its place, PRESILD and staffed with technical the New Model of Governance for personnel of recognized competence.. PRESILD. 7th of November 2008 This New Model is composed of the Coordination Group for the Angop Implementation of the Program for the Restructuring of the Logistic System and Essential Product Distribution to the Population and by the PRESILD Monitoring, Control and Supervision Committee. The abovementioned Coordination Group is coordinated by the Minister of Finance and comprises the head of the Chief of Military Staff of the Presidency, Economic Advisors to the President of the Republic and the Prime Minister and the Deputy Minister of Finance. Other members include representatives from the Ministries of Economy, Commerce, Interior, National Defense, Territorial Administration, Agriculture, Fisheries, Industry, as well as the Angolan Armed Forces Headquarters and the National Police Headquarters. 19 Mukanda Económica – Economic Newsletter

I) Real Estate

President creates group for World Bank may monitor urban Government Housing Program growth indicators The President of the Republic, The Minister of Urban Affairs and Engineer José Eduardo dos Santos, Housing, Diekumpuna Sita José, on created a Working Group on Tuesday Wednesday in Nangjing (China), charged with the preparation of the during a meeting with a Director of Executive Housing Program of the the Economic and Urban Government, in order to meet one of Development Department of the the most pressing needs of the World Bank, explored the possibility country. of this international financial institution monitoring Angolan urban indicators and cities. The duties of the group include the preparation of the program, contract and guidelines for the reorganization The parties concluded that a technical and development of cities and towns, committee headed by the Director of identification of resources and the Global Cities Department of the instruments to obtain funding, as well Center of Studies of the Toronto as incentives for the growth of the University, Mrs. Patricia McCartney, housing sector. would visit Angola during the second half of December to facilitate Coordinated by the Minister of Urban negotiations between the Angolan Affairs and Housing, assisted by the government and the World Bank, thus Director of the National commencing the conduct of a Reconstruction Office, other workshop on urban management and members of the group include housing, in partnership with UN- representatives of the Ministries of Habitat. Planning, Finance, Public Works, Territorial Administration and 4th of November 2008 Environment. Angop 4th of November 2008 Angop 20 Mukanda Económica – Economic Newsletter

Eximbank will support the Government in the construction of one million houses The American Import-Export Bank “Exim Bank” will provide support to the Angolan Government in the construction of one million houses, the region Director for Africa, John Ritcher, said today, Tuesday, in Luanda.

The Director made these remarks in a statement to Angop at the end of his meeting with the Angolan Minister of Urban Affairs and Housing, Sita José, where he discussed issues related to ways and partnership that his institution and the Government of Angola are exploring to improve the social well-being of the citizens.

According to John Ritcher, the project for the construction of homes will meet the needs of various families, which fulfills the commitment made by the Government to its citizens. Thus, Exim Bank is also cooperating to ensure that this plan becomes a reality.

He informed that the houses will be constructed by American companies with use of Angolan workers.

“Exim Bank will provide all the logistic support to the American companies, which will begin to arrive at the beginning of 2009 to be involved in the project. This was one of the points of discussion with the Minister”, he said. 18th November 2008 Angop 21 Mukanda Económica – Economic Newsletter

J) Financial Services

World Bank available to loan 1 billion dollars to Luanda “Angola has international reserves The World Bank (WB) is available to estimated at between 18-19 Billion loan 1 billion Dollars to Angola for Dollars and this gives it greater development programs if Luanda security to manage the financial applies for a loan, the World Bank crisis”, he explained. representative said in Luanda on Tuesday. 18th of November 2008 MacauHub Alberto Chueca considers Angola as a “strong” partner of the WB, stressing that the World Bank has had 18 years Banco Africano de Investimento of “active” presence in the country, inaugurates branch office in Cape through the funding of various Verde projects in the areas of health, Banco Africano de Investimento (BAI) education, infrastructure, water and yesterday, Friday, inaugurated a electricity. branch office in Sal, Cape Verde, as part of its internationalization strategy, According to Chueca, “Angola is by which it now operations in Portugal currently better positioned to benefit through BAI Europe. from WB financing”, translated into loans for social programs, “essentially targeted at improving the living A press communiqué made available conditions of its population”. to Angop by the bank states that BAI Cape Verde is a Cape Verdean and “Angola has financial guarantees, Angolan joint capital venture that will given that it has settled its external serve the corporate sector and debt, particularly with the Paris Club”, individuals. Chueca emphasized, in statements made to the Portuguese news With an equity capital of one billion agency, Lusa. Cape Verdean escudos, BAI Cape Verde has its corporate headquarters Regarding the current influence of the in Praia, the capital of the archipelago world financial crisis on the Angolan and plans to open branches in economy, Alberto Chueca said that it Mindelo and Ilha do Sal before the will doubtless have an impact, but end of the year. that the country is “better protected” than other African countries. 21st of November Angop 22 Mukanda Económica – Economic Newsletter

Exim Bank of South Korea grants funding to Angola

The Deputy Minister of External Relations, George Chicoty, informed that Angola will soon have a poultry meat processing complex, an investment of 49 million Dollars to be established in Malange Province.

According to Jornal de Angola, the construction of the agriculture and livestock complex is one more funding received from the South Korean government within the framework of an agreement signed in Luanda between the two countries.

Under the terms of the agreement, where George Chicoty represented Angola and Ambassador Hans Jae- Young South Corea, Angola receives a loan of 49 million Dollars from the Export’Import Bank of that Asian country, an amount that may be fully utilized for the poultry processing complex.

George Chicoty and Hans Jae-Young signed another agreement aimed at materializing projects of the Economic Development Cooperation Fund 2008/2009, at the sum of 130 million Dollars.

26th of November 2008 MacauHub 23 Mukanda Económica – Economic Newsletter

3. Relevant Statistical Data

Trade Data

Trade Data Portugal Angola TOTAL 2006 2007 Sep. 07 Sep. 08 ∆Sep. 08/Sep. 07 Exports 1.209.832 1.680.181 1.194.295 1.565.727 31,1% Imports 52.749 360.378 261.329 340.773 30,4% Unit: Thousands of Euros Source: INE

Trade Data Brasil Angola TOTAL 2006 2007 Oct. 07 Oct. 08 ∆Oct. 08/Oct. 07 Exports 836.076 1.218.236 944.906 1.468.431 55,4% Imports 459.499 946.354 946.332 2.144.773 126,6% Unit: Thousands of USD Source: Ministry of Development Industry anf Foreign Commerce of Brazil

Trade Data South Africa Angola TOTAL 2006 2007 Sep. 07 Sep. 08 ∆Sep. 08/Sep. 07 Exports 4.677.391 5.424.980 3.829.470 5.313.223 38,7% Imports 2.485.758 11.582.486 7.054.816 19.439.668 175,6% Unit: Thousands of Rands Source: Ministry of Finance of South Africa

Trade Data China Angola TOTAL 2006 2007 April 07 April 08 ∆April 08/April 07 Exports 894.186 1.231.311 312.365 742.538 137,7% Unit: Thousands of Dollars Source: Factiva 24 Mukanda Económica – Economic Newsletter

4.Relevant Legislation Published

Executive Decree number 248/08 – Creates the Integrated Committee of Technological Training (“CINFOTEC”) and it approves its organic articles of association-it revokes all the legislation that contradicts this law.

Decree number 116/08 of October 14th – About recruitment, integration, training and development of people in the oil industry – it revokes all the legislation that contradicts the present decree, namely Decree number 20/82 of April 17th; The Executive Decrees 124/82 and 125/82, both of 31st December and article 26 of Decree number 52/92 of September 16th.

Executive Decree 306/08 of October 28th – Creates Provincial Professional Training Centers and it approves the organic articles of association which regulates the centers – it revokes all the legialation that contradicts this law.

Executive Decree number 307/08 of October 28th – Creates the professional Training Center for Civil Construction (CENFOC) and it approves its articles of association – It revokes all the legislation that contradicts this law.

Dispatch number 463/08 of October 29th – It proceeds with the review of areas related with the coordination and management for the Minister and the Vice Minister – It revokes Dispatch number 190/07, of February 19th.

Executive Decree number 308/08 of October 29th – Creates the Municipal Professional Centre and it approves its organic articles of association – it revokes all the legislation that contradicts this law.

Dispatch number 29/08 of November 6th – Removes the Executive Secretarial of PRESILD – It revokes all the legislation that contradicts this law, namely the Presidential Dispatch number 17/05, of October 31st and Dispatch number 196/06 of March 15th. 25 Mukanda Económica – Economic Newsletter

5.Fairs and other events to be held in Angola and abroad

KPMG and Grupo Mombaka signed a business partnership for S. Tomé e Príncipe

KPMG and Grupo Mombaka signed a business development partnership for S. Tomé e Príncipe. The partnership was presented on 31 October in S. Tomé in the presence of representatives of the Government of S. Tomé, the banking sector and For additional information, please businessmen, a total of 100 guests. The event was covered by the major media contact: houses, namely RTP Africa and the local press. Manuel Espada As a result of this partnership and the visit of the President of KPMG Angola, Dr. Paul de Sousa, business opportunities were identified for KPMG and the [email protected] opportunity for it to support the local Government in the development of the country through the provision of quality professional services capable of attracting greater foreign investment and support. Thus, the first step toward strengthening the local presence of KPMG in the Gulf of Guinea, was taken. Manuel Espada

Financial Risk Management

2nd Meeting of Basel II National and International Players 28 e 29 of January 2009, Lisbon The Institute for International Research Portugal presents you the 2nd Meeting of Basel II National and International Players. Enhance your internal processes and promote a Global Risk Management culture. Know how to develop and optimize Risk Management, Bank Supervision and Capital Allocation under the current market conditions. We bring to you the Bank For additional information, please of Portugal and the Spanish Association of Banks that will share with you the contact: actions taken to face the current challenges for financial groups and financial Ana Seabra authorities and, on the other hand, will help you to understand the strategies that are being adopted by the Portuguese and European banks to fully comply with [email protected] Basel II requirements. 26 Mukanda Económica – Economic Newsletter

IARCS

3rd Internal Audit for Financial Institutions: The Future of Internal Audit 18-20 February 2009 , Amsterdam Internal audit is now on an extensive journey to meet new challenges. Rapid, often unexpected changes in the business environment push internal audit to brave For additional information, please transformation of its practices. The improvement of overall business performance contact: is presently in demand. Therefore internal audit primarily needs to understand its Ana Seabra role within the organization. [email protected] This 3rd Annual Conference will provide you with outstanding insight into the future and leading trends of the internal audit industry. You will learn how to tackle a variety of crises and improve internal audit efficiency. You will find out the most promising ways in how you can take your function forward and add value to your business, based on real life stories and discussions.

Information, Communication and Entertainment

Banking & Payment Technologies East Africa, 2009 Nairobi, 17-19 February 2009 Technology represents a great opportunity for the banking sector in relation to mass, improvement of service delivery and costs reduction however, in order to implement what the suppliers of technology products and services have to offer, we can not forget the focal point of all banking processes, and are often relegated to the background, the Customer.

The 2009 Banking Technology will maintain its focus on experience in relation to the implementation of technology products and services, challenging suppliers and banks to assess their systems in light of the needs and preferences of customers. The Banking Technology 2009 will also keep a close very significant with clients in the banking sector, inviting them to visit the exhibition and to experiment new services made available through a wide range of new technologies Banking & Payment offered by banks.

The banks will be invited to demonstrate their services by establishing mini- For additional information, please branches in the area of exposure, using them as platforms not only to publicize contact: their services, but also to get feedback and data from consumers of banking Ricardo Dias products and services. The Shopping Banking (Banking Mall) from exposure is a laboratory for live [email protected] demonstration of world-class banking services, through enhanced technologies of the last of Banking & Payment. 27 Mukanda Económica – Economic Newsletter

6.KPMG Services

KPMG’s practice is structured in the areas of services of Audit, Tax and Advisory. But more important than our organization is our ability to configure a comprehensive approach, with the best experts, to address the organizations with whom we work. At KPMG we have the skills, people and motivation to help in responding to their current and future challenges.. 28 Mukanda Económica – Economic Newsletter

7. Service Highlights

Recruitment and Selection

Executive Search Our competence meets a variety of clients from the public to the private sector, including ONG’s. The search for best professionals or with functions of high technical complexity can be focused either in the local or international market. With our staright enquiry, the accumulated knowledge of the Angolan reality and international dimension that we detain, we are able to find candidates appropriated for all the positions, from top executives, passing by functions that demand elevated technical skills. Each service is seen has a specific project of elevated value for the client and potential candidates. The professional secrecy and the discretion are basic and determinative conditions of our work. Recruitment and Selection Supported by the most different and modern sources of excellence recruitment, our selection methods include, the deep analysis of our client needs, his culture and the growth startegy of his organization in order to find the most appropriate profile to each case. After identifying the best recruitment sources for the available places, we select we select the professionals who are better adapted to each organizational reality, through the application of batteries of psychometric tests adjusted for each situation, as well as, biographical, technical motivation and behavioral interviews, resorting to the most recent models of competences evaluation. Whenever relevant, we can apply specific knowledge tests regarding the area of work for the mentioned function. With these methods, we have been able to satisfy most of our Recruitment and Selection projects, in spite of the conditions of the current market job in Angola. 29 Mukanda Económica – Economic Newsletter

Psychological evaluation When our clients detain all the necessary conditions to execute the complete recruitment and selection process, whe can only act on the psycological evaluation of the candidates. In these cases, in accordance with the objectives that the client intends to reach, we prepare and execute the set of psychometric tests and/or others that satisfy the psychological dimensions that are intended to value. This work is secured by advisers prepared for this type of intervention. Large Projects of Selection (start-ups) and Outsourcing The economical growth of the Angolan market and our clients solicitations have driven us to develop this service, that allows us to use differentiated startegies and adjusted to each position, that allows the identification of several professionals in simultaneous. Particularly adjusted for companies that intend to begin its activity in Angola, or with a quick growth strategy, the knowledge that KPMG detains of the angolana market allows us to draw a large selection project, well-adjusted for each case. Another service that we provide to our clients, being or not in the begining of the activity, it is the service of Outsouring of the function of Recruitment and Selection of its organization. Therefore, after a well defined necessities plan (short, middle and long terms) regarding the number and profile of the collaborators to recruit, we define and develop the whole process of recruitment and subsequent selection. In the end of For additional information, please this process, the organization will only decide whom is going to admit and contract. contact: Confidentiality and Independence Daniel Ferrão .All KPMG professionals are required by a written undertaking to duties of [email protected] confidentiality and independence. This means that all our work should be carried out to the highest standards of confidentiality and independence, unrelated to any Bruno Banco pressure and / or external non-technical influences. [email protected] Irina Silva [email protected] kpmg.comkpmg.com

CONTACTS:

An image can be placed here if you don’t need thisFernando space Anjos for text. [email protected] Tel.:(244) 222310825 Mobile: (244) 917651245 Fax: (244) 222 310 540

Edifício Presidente Largo 4 de Fevereiro, nº 3, 1º Andar Caixa Postal 2021 Luanda – Angola

This is usually for contacts.

The information contained in section 2 (news) was extracted from some sources (ANGOP, Jornal de Angola, MacauHub). © 2008 KPMG Auditores e Consultores, S.A. the The opinions it contains are not KPMG’s responsibility. This document is a translation of the original document and special Angolan firm member of KPMG International, a Swiss precautions were taken for an accurate translation. We are not responsible for any errors that may in some way tamper with cooperative. All rights reserved. Produced in Angola. the content of the information We recommend that, for more details, the following Web sites and the original document, This document is distributed free of charge by are consulted:On www.a lastngop.ao; www.jornaldeangola.com; page text www.maca shoulduhub.com.mo. not appear belowinterested parties. this Forbidden grid resale. line

The KPMG and the KPMG logo are trademarks from KPMG International. © 2008 KPMG Auditores e Consultores, SARL, empresa angolana, As informações contidas no ponto 2 (Notícias) foram extraídas de algumas fontes (Angop, Jornal de Angola, MacauHub). As opiniões nela contidas membro da rede de firmas independentes da KPMG Internacional, não são da responsabilidade da KPMG.